Corporate and Operations Update
The Company reports that the process of updating its NI 43-101 Technical Report on the El Colomo Gold-Silver project (“El Colomo”) located in the Sierra Madre Occidental Trend in Western Mexico is nearing completion and should be filed with the regulatory authorities shortly.
The Company is pleased to report that it is currently negotiating ore supply contracts with multiple local Mexican mining operators to supply its 300-ton per day mill at Huajicori. As the resource industry continues to rebound, and with gold prices relatively stable, local producers have begun restarting operations – the Company is well-positioned to ramp up processing immediately. As needed, capacity at the Gainey mill can be scaled to up to 600 tons per day on an extremely cost-effective basis.
Exploration Update – El Colomo Project
The Company is currently completing its Phase 1 drill program focused on the La Higuerita mineralized zone (“La Higuerita”) and the near-surface La Nueva Victoria Mineralized zone (‘La Nueva Victoria’) which are two of the Company’s 21 known mineralized zones within El Colomo. Drilling results from La Nueva Victoria have been released in previous news releases dated September 28 and October 3, 2016. Results from La Higuerita, which have been sampled and shipped to ALS Chemex Labs in Vancouver, BC for analysis, will be reported as soon as they become available.
La Higuerita is a part of Gainey’s 100%-owned, 187 km2 El Colomo Gold-Silver project that hosts 21 highly prospective, gold-silver mineralized zones located within the Sierra Madre Golden Belt, Mexico.
Drilling at El Colomo has to date returned significant gold and silver mineralization (see news releases dated September 28 and October 3, 2016). Due to these results, Gainey continues to develop current prospects and identify additional drilling targets at El Colomo.
David Coburn, CEO of Gainey Capital, commented, “Gainey will continue to push forward with our exploration program, drilling our most prospective identified targets. Our geological team has recently completed a comprehensive onsite technical review and is expecting to establish several new targets for a Phase 2 Drill program shortly. We expect to provide more specifics on both the Phase 2 exploration and additional targets as soon as they become available.”